Preparation Time: 10 minutes
Grind the ingredients: In a blender, add grated coconut, roasted chana dal, green chilies, ginger (if using), salt, and water. Blend into a smooth or slightly coarse paste, depending on your preference. Add more water if necessary to get the desired consistency.
Transfer to a bowl: Pour the blended chutney into a serving bowl and adjust salt if needed.
Heat oil: In a small pan, heat oil over medium heat. Add mustard seeds: Once the oil is hot, add mustard seeds and let them splutter. Add urad dal and red chilies: Add urad dal (if using), and fry until golden. Then add the dried red chilies and curry leaves. Finish: Add a pinch of asafoetida and immediately pour the tempering over the prepared chutney.
Serve the coconut chutney with dosa, idli, vada, or uttapam. It can also be a great dip for snacks.